In funded NOVA accounts, the Lock Upon Payout (LUP) model defines how your maximum trailing drawdown behaves after a payout. Once a payout is approved, your drawdown will lock at the starting balance of the funded account. From that moment forward, the drawdown no longer trails upward, regardless of future account growth.
Recommendation: Leave a profit buffer. Withdrawing the full profit leaves little protection against normal market fluctuations, and building an additional profit cushion before withdrawing improves account stability and longevity.
Where LUP applies
Account stage | LUP |
Evaluation | Not applicable |
Funded | Applies after first payout |
How Lock Upon Payout works
| Drawdown behavior |
Before your first payout | The drawdown trails the highest equity. As profits increase, the breach level rises. |
After your payout is processed | The drawdown locks at the funded starting balance. The breach level no longer trails upward and future gains do not increase drawdown room. |
Examples
| Example 1: moderate withdrawal | Example 2: large withdrawal |
Initial funded balance | $10,000 | $10,000 |
Balance after gains | $11,000 | $11,000 |
Payout request | $500 | $950 |
Drawdown locks at | $10,000 | $10,000 |
Remaining buffer | $500 | $50 |
In both cases the account will breach only if balance or equity drops below $10,000. A large withdrawal leaves minimal room before breaching the account.
Important considerations
While traders may withdraw profits at any eligible payout window, risk exposure increases as the buffer decreases. We strongly recommend:
Leave a profit buffer: withdrawing the full profit leaves little protection against normal market fluctuations.
Grow before withdrawing: building an additional profit cushion can improve account stability and longevity.
Why LUP exists
The Lock Upon Payout model is designed to protect funded capital, secure trader payouts, prevent excessive risk escalation, and encourage sustainable account growth. By locking drawdown after payouts, traders are incentivized to manage risk responsibly.
Key clarifications
LUP activates after the first approved payout.
Drawdown locks at the funded starting balance.
Future profits do not increase drawdown room.
Breach occurs if balance or equity drops below the locked level.